What will canceling $10,000 in student debt really do?

Michelle Cheng
·4-min read
What will canceling $10,000 in student debt really do?

With an economy in slow recovery, and the burden of education loans higher than ever, US president Joe Biden is facing increasing pressure from Democrats to wipe out $50,000 in student debt per borrower, and to do so via executive action. On the campaign trail, Biden pledged to clear $10,000 of federal student loan debt per borrower—a small dent in the more than $1.5 trillion of student loans issued or guaranteed by the US government. Forgiving $10,000 in debt would completely wipe out the student loan burden for one-third of America’s 43 million federal borrowers, data from the US Department of Education suggests.